Frequently Asked Questions About Instant Personal Loans

Personal Loans help meet a wide range of expenses like home renovation, weddings, medical emergencies, higher education, international vacations, and more. Applying for an instant personal loans online from new-age NBFCs like Clix Capital enables you to get fast approval and disbursal within a few minutes. Lending institutions provide these unsecured loans based on criteria like credit history, income level, employment history, repayment capacity, and other crucial factors. 

Here, you will get answers to all the common questions about personal loans, based on which you can make an informed borrowing decision.

• What are the factors that affect loan eligibility?

An individual’s loan eligibility depends on various factors, including income, employment, work experience, and outstanding balances. The credit score is another crucial factor that plays a key role in determining the loan amount.

• Is a handsome salary sufficient for instant loan approval? 

Although loan providers rely a lot on the applicant’s monthly salary, an instant loan approval depends on several other factors, including current financial obligations, credit rating, documents, etc. A high debt-to-income ratio, multiple loans running simultaneously, and inconsistent repayment history could be possible reasons for loan rejection despite a handsome salary package.

• What are the documents required to apply for a Personal Loan?

Applicants must provide identity, residence, and income proofs to verify eligibility while applying for an instant personal loan. These often include the applicant’s Aadhaar card, PAN card, salary slips, ITR, account statements, etc. However, most reputed lending institutions support digital loan procedures, so applicants do not need to visit their offices to submit these documents. Technologically advanced NBFCs like Clix Capital verify the documents online through the e-KYC process, making the entire process faster and hassle-free.

• What are the loan repayment term options?

Most reputed NBFCs have flexible repayment terms ranging from 12-48 months, allowing borrowers to select a period with budget-friendly EMIs. A personal loan EMI calculator is an excellent online tool that helps calculate EMIs for different loan terms, enabling borrowers to choose the most suitable repayment tenure.

• Why is credit score so crucial for Personal Loan applications?

The credit score is a vital indicator of an individual’s loan history and financial status. Maintaining an Experian credit score of 630 or above ultimately helps a loan application, as it helps get a bigger loan amount at the lowest interest rates. Those with a decent credit score have responsible credit behaviour and consistent repayment history, which poses a minimum lending risk to the NBFC. Therefore, they feel safer lending an instant personal loan to such individuals.

• What are the benefits of applying for a Personal Loan online?

Many NBFCs like Clix Capital support a 100% online loan process that applicants complete from their homes without any physical paperwork. Online loans are accessible 24/7, irrespective of working hours, holidays, and festivals. Moreover, online lending services give real-time tracking facility to the users, apart from several loan-related tools like credit score checker and EMI calculator.

Those looking for an instant personal loan will find these FAQs extremely informative, based on which they can make an informed borrowing decision. Please read them carefully and use the right tools to select the best loan and get it at the best interest rates.